26

4 - Incorporation and Immigration Mini-Chapter on Incorporation and Immigration (The following article is taken from the U.S. Department of State publication Outline of U.S. History.) TECHNOLOGY AND CHANGE “The Civil War,” says one writer, “cut a wide gash through the history of the country; it dramatized in a stroke the changes that had begun to take place during the preceding 20 or 30 years. ...” War needs had enormously stimulated manufacturing, speeding an economic process based on the exploitation of iron, steam, and electric power, as well as the forward march of science and invention. In the years before 1860, 36,000 patents were granted; in the next 30 years, 440,000 patents were issued, and in the first quarter of the 20th century, the number reached nearly a million. As early as 1844, Samuel F. B. Morse had perfected electrical telegraphy; soon afterward distant parts of the continent were linked by a network of poles and wires. In 1876 Alexander Graham Bell exhibited a telephone instrument; within half a century, 16 million telephones would quicken the social and economic life of the nation. The growth of business was speeded by the invention of the typewriter in 1867, the adding machine in 1888, and the cash register in 1897. The linotype composing machine, invented in 1886, and rotary press and paper-folding machinery made it possible to print 240,000 eight-page newspapers in an hour. Thomas Edison’s incandescent lamp eventually lit millions of homes. The talking machine, or phonograph, was perfected by Edison, who, in conjunction with George Eastman, also helped develop the motion picture. These and many other applications of science and ingenuity resulted in a new level of productivity in almost every field. Concurrently, the nation’s basic industry – iron and steel – forged ahead, protected by a high tariff. The iron industry moved westward as geologists discovered new ore deposits, notably the great Mesabi range at the head of Lake Superior, which became one of the largest producers in the world. Easy and cheap to mine, remarkably free of chemical impurities, Mesabi ore could be processed into steel of superior quality at about one-tenth the previously prevailing cost. CARNEGIE AND THE ERA OF STEEL Andrew Carnegie was largely responsible for the great advances in steel production. Carnegie, who came to America from Scotland as a child of 12, progressed from bobbin boy in a cotton factory to a job in a telegraph office, then to one on the Pennsylvania Railroad. Before he was 30 years old he had made shrewd and farsighted investments, which by 1865 were concentrated in iron. Within a few years, he had organized or had stock in companies making iron bridges, rails, and locomotives. Ten years later, he built the nation’s largest steel mill on the Monongahela River in Pennsylvania. He acquired control not only of new mills, but also of coke and coal properties, iron ore from Lake Superior, a fleet of steamers on the Great Lakes, a port town on Lake Erie, and a connecting railroad. His business, allied with a dozen others, commanded favorable terms from railroads and shipping lines. Nothing comparable in industrial growth had ever been seen in America before. Though Carnegie long dominated the industry, he never achieved a complete monopoly over the natural resources, transportation, and industrial plants involved in the making of steel. In the 1890s, new companies challenged his preeminence. He would be persuaded to merge his holdings into a new corporation that would embrace most of the important iron and steel properties in the nation. CORPORATIONS AND CITIES

27 The United States Steel Corporation, which resulted from this merger in 1901, illustrated a process under way for 30 years: the combination of independent industrial enterprises into federated or centralized companies. Started during the Civil War, the trend gathered momentum after the 1870s, as businessmen began to fear that overproduction would lead to declining prices and falling profits. They realized that if they could control both production and markets, they could bring competing firms into a single organization. The “corporation” and the “trust” were developed to achieve these ends. Corporations, making available a deep reservoir of capital and giving business enterprises permanent life and continuity of control, attracted investors both by their anticipated profits and by their limited liability in case of business failure. The trusts were in effect combinations of corporations whereby the stockholders of each placed stocks in the hands of trustees. (The “trust” as a method of corporate consolidation soon gave way to the holding company, but the term stuck.) Trusts made possible large-scale combinations, centralized control and administration, and the pooling of patents. Their larger capital resources provided power to expand, to compete with foreign business organizations, and to drive hard bargains with labor, which was beginning to organize effectively. They could also exact favorable terms from railroads and exercise influence in politics. The Standard Oil Company, founded by John D. Rockefeller, was one of the earliest and strongest corporations, and was followed rapidly by other combinations – in cottonseed oil, lead, sugar, tobacco, and rubber. Soon aggressive individual businessmen began to mark out industrial domains for themselves. Four great meat packers, chief among them Philip Armour and Gustavus Swift, established a beef trust. Cyrus McCormick achieved preeminence in the reaper business. A 1904 survey showed that more than 5,000 previously independent concerns had been consolidated into some 300 industrial trusts. The trend toward amalgamation extended to other fields, particularly transportation and communications. Western Union, dominant in telegraphy, was followed by the Bell Telephone System and eventually by the American Telephone and Telegraph Company. In the 1860s, Cornelius Vanderbilt had consolidated 13 separate railroads into a single 800-kilometer line connecting New York City and Buffalo. During the next decade he acquired lines to Chicago, Illinois, and Detroit, Michigan, establishing the New York Central Railroad. Soon the major railroads of the nation were organized into trunk lines and systems directed by a handful of men. In this new industrial order, the city was the nerve center, bringing to a focus all the nation’s dynamic economic forces: vast accumulations of capital, business, and financial institutions, spreading railroad yards, smoky factories, armies of manual and clerical workers. Villages, attracting people from the countryside and from lands across the sea, grew into towns and towns into cities almost overnight. In 1830 only one of every 15 Americans lived in communities of 8,000 or more; in 1860 the ratio was nearly one in every six; and in 1890 three in every 10. No single city had as many as a million inhabitants in 1860; but 30 years later New York had a million and a half; Chicago, Illinois, and Philadelphia, Pennsylvania, each had over a million. In these three decades, Philadelphia and Baltimore, Maryland, doubled in population; Kansas City, Missouri, and Detroit, Michigan, grew fourfold; Cleveland, Ohio, sixfold; Chicago, tenfold. Minneapolis, Minnesota, and Omaha, Nebraska, and many communities like them – hamlets when the Civil War began – increased 50 times or more in population. THE DIVIDED SOUTH After Reconstruction, Southern leaders pushed hard to attract industry. States offered large inducements and cheap labor to investors to develop the steel, lumber, tobacco, and textile industries. Yet in 1900 the region’s percentage of the nation’s industrial base remained about what it had been in 1860. Moreover, the price of this drive for industrialization was high: Disease and child labor proliferated in Southern mill towns. Thirty years after the Civil War, the South was still poor, overwhelmingly agrarian, and economically dependent. Moreover, its race relations reflected not just the legacy of slavery, but what was emerging as the central theme of its history – a determination to enforce white supremacy at any cost.

28 Intransigent white Southerners found ways to assert state control to maintain white dominance. Several Supreme Court decisions also bolstered their efforts by upholding traditional Southern views of the appropriate balance between national and state power. In 1873 the Supreme Court found that the 14th Amendment (citizenship rights not to be abridged) conferred no new privileges or immunities to protect African Americans from state power. In 1883, furthermore, it ruled that the 14th Amendment did not prevent individuals, as opposed to states, from practicing discrimination. And in Plessy v. Ferguson (1896), the Court found that “separate but equal” public accommodations for African Americans, such as trains and restaurants, did not violate their rights. Soon the principle of segregation by race extended into every area of Southern life, from railroads to restaurants, hotels, hospitals, and schools. Moreover, any area of life that was not segregated by law was segregated by custom and practice. Further curtailment of the right to vote followed. Periodic lynchings by mobs underscored the region’s determination to subjugate its African-American population. Faced with pervasive discrimination, many African Americans followed Booker T. Washington, who counseled them to focus on modest economic goals and to accept temporary social discrimination. Others, led by the African-American intellectual W.E.B. Du Bois, wanted to challenge segregation through political action. But with both major parties uninterested in the issue and scientific theory of the time generally accepting black inferiority, demands for racial justice attracted little support.

Documents for Incorporation and Immigration

A Complete Home: Geo. F. Barber & Co. (1892)

29

Questions: What about this home suggests the use of servants? What else about this home might reflect the values of people at that time?

30 Plessy v Ferguson (1896) Justice Brown delivered the opinion of the Court. This case turns upon the constitutionality of an act of the General Assembly of the State of Louisiana, passed in 1890, providing for separate railway carriages for the white and colored races. . . . The object of the [fourteenth] amendment was undoubtedly to enforce the absolute equality of the two races before the law, but in the nature of things it could not have been intended to abolish distinctions based upon color, or to enforce social, as distinguished from political equality, or a commingling of the two races upon terms unsatisfactory to either. Laws permitting, and even requiring, their separation in places where they are liable to be brought into contact do not necessarily imply the inferiority of either race to the other, and have been generally, if not universally, recognized as within the competency of the state legislatures in the exercise of their police power. The most common instance of this is connected with the establishment of separate schools for white and colored children, which has been held to be a valid exercise of the legislative power even by courts of States where the political rights of the colored race have been longest and most earnestly enforced. . . . So far, then, as a conflict with the Fourteenth Amendment is concerned, the case reduces itself to the question whether the statute of Louisiana is a reasonable regulation, and with respect to this there must necessarily be a large discretion on the part of the legislature. In determining the question of reasonableness it is at liberty to act with reference to the established usages, customs and traditions of the people, and with a view to the promotion of their comfort, and the preservation of the public peace and good order. Gauged by this standard, we cannot say that a law which authorizes or even requires the separation of the two races in public conveyances is unreasonable, or more obnoxious to the Fourteenth Amendment than the acts of Congress requiring separate schools for colored children in the District of Columbia, the constitutionality of which does not seem to have been questioned, or the corresponding acts of state legislatures. We consider the underlying fallacy of the plaintiff's argument to consist in the assumption that the enforced separation of the two races stamps the colored race with a badge of inferiority. If this be so, it is not by reason of anything found in the act, but solely because the colored race chooses to put that construction upon it. The argument necessarily assumes that if, as has been more than once the case, and is not unlikely to be so again, the colored race should become the dominant power in the state legislature, and should enact a law in precisely similar terms, it would thereby relegate the white race to an inferior position. We imagine that the white race, at least, would not acquiesce in this assumption. The argument also assumes that social prejudices may be overcome by legislation, and that equal rights cannot be secured to the negro except by an enforced commingling of the two races. We cannot accept this proposition. If the two races are to meet upon terms of social equality, it must be the result of natural affinities, a mutual appreciation of each other's merits and a voluntary consent of individuals. . . . Legislation is powerless to eradicate racial instincts or to abolish distinctions based upon physical differences, and the attempt to do so can only result in accentuating the difficulties of the present situation. If the civil and political rights of both races be equal one cannot be inferior to the other civilly or politically. If one race be inferior to

31 the other socially, the Constitution of the United States cannot put them upon the same plane. . . . Justice Harlan delivered the dissenting opinion While there may be in Louisiana persons of different races who are not citizens of the United States, the words in the act, "white and colored races," necessarily include all citizens of the United States of both races residing in that State. So that we have before us a state enactment that compels, under penalties, the separation of the two races in railroad passenger coaches, and makes it a crime for a citizen of either race to enter a coach that has been assigned to citizens of the other race. . . . In respect of civil rights, common to all citizens, the Constitution of the United States does not, I think, permit any public authority to know the race of those entitled to be protected in the enjoyment of such rights. Every true man has pride of race, and under appropriate circumstances when the rights of others, his equals before the law, are not to be affected, it is his privilege to express such pride and to take such action based upon it as to him seems proper. But I deny that any legislative body or judicial tribunal may have regard to the race of citizens when the civil rights of those citizens are involved. Indeed, such legislation, as that here in question, is inconsistent not only with that equality of rights which pertains to citizenship, National and State, but with the personal liberty enjoyed by everyone within the United States. . . . In my opinion, the judgment this day rendered will, in time, prove to be quite as pernicious as the decision made by this tribunal in the Dred Scott case. . . . The present decision, it may well be apprehended, will not only stimulate aggressions, more or less brutal and irritating, upon the admitted rights of colored citizens, but will encourage the belief that it is possible, by means of state enactments, to defeat the beneficent purposes which the people of the United States had in view when they adopted the recent amendments of the Constitution, by one of which the blacks of this country were made citizens of the United States and of the States in which they respectively reside, and whose privileges and immunities, as citizens, the States are forbidden to abridge. Sixty millions of whites are in no danger from the presence here of eight millions of blacks. The destinies of the two races, in this country, are indissolubly linked together, and the interests of both require that the common government of all shall not permit the seeds of race hate to be planted under the sanction of law. What can more certainly arouse race hate, what more certainly create and perpetuate a feeling of distrust between these races, than state enactments, which, in fact, proceed on the ground that colored citizens are so inferior and degraded that they cannot be allowed to sit in public coaches occupied by white citizens? That, as all will admit, is the real meaning of such legislation as was enacted in Louisiana. . . . I am of opinion that the statute of Louisiana is inconsistent with the personal liberty of citizens, white and black, in that State, and hostile to both the spirit and letter of the Constitution of the United States. . . . Question: What are the main differences between the majority and the dissenting opinions? Thorstein Veblen: Conspicuous Consumption (1899)

32 [Why the rich engage in costly entertainments] Conspicuous consumption of valuable goods is a means of reputability to the gentleman of leisure. As wealth accumulates on his hands, his own unaided effort will not avail to sufficiently put his opulence in evidence by this method. The aid of friends and competitors is therefore brought in by resorting to the giving of valuable presents and expensive feasts and entertainments. Presents and feasts had probably another origin than that of naive ostentation, but they acquired their utility for this purpose very early, and they have retained that character to the present; so that their utility in this respect has now long been the substantial ground on which these usages rest. Costly entertainments, such as the potlatch or the ball, are peculiarly adapted to serve this end. The competitor with whom the entertainer wishes to institute a comparison is, by this method, made to serve as a means to the end. He consumes vicariously for his host at the same time that he is a witness to the consumption of that excess of good things which his host is unable to dispose of singlehanded, and he is also made to witness his host's facility in etiquette. [Obligations of the leisure class] As wealth accumulates, the leisure class develops further in function and structure, and there arises a differentiation within the class. There is a more or less elaborate system of rank and grades. This differentiation is furthered by the inheritance of wealth and the consequent inheritance of gentility. With the inheritance of gentility goes the inheritance of obligatory leisure; and gentility of a sufficient potency to entail a life of leisure may be inherited without the complement of wealth required to maintain a dignified leisure. Gentle blood may be transmitted without goods enough to afford a reputably free consumption at one's ease. . . . [Why and how the middle-class wife engages in consumption] With the disappearance of servitude, the number of vicarious consumers attached to any one gentleman tends, on the whole, to decrease. The like is of course true, and perhaps in a still higher degree, of the number of dependents who perform vicarious leisure for him. In a general way, though not wholly nor consistently, these two groups coincide. The dependent who was first delegated for these duties was the wife, or the chief wife; and, as would be expected, in the later development of the institution, when the number of persons by whom these duties are customarily performed gradually narrows, the wife remains the last. In the higher grades of society a large volume of both these kinds of service is required; and here the wife is of course still assisted in the work by a more or less numerous corps of menials. But as we descend the social scale, the point is presently reached where the duties of vicarious leisure and consumption devolve upon the wife alone. In the communities of the Western culture, this point is at present found among the lower middle class. And here occurs a curious inversion. It is a fact of common observance that in this lower middle class there is no pretense of leisure on the part of the head of the household. Through force of circumstances it has fallen into disuse. But the middle-class wife still carries on the business of vicarious leisure, for the good name of the household and its master. In descending the social scale in any modern industrial community, the primary fact— the conspicuous leisure of the master of the household—disappears at a relatively high point. The head of the middle-class household has been reduced by economic circumstances to turn his hand to gaining a livelihood by occupations which often partake largely of the character of industry, as in the case of the ordinary business man of today. But the derivative fact—the

33 vicarious leisure and consumption rendered by the wife, and the auxiliary vicarious performance of leisure by menials—remains in vogue as a conventionality which the demands of reputability will not suffer to be slighted. It is by no means an uncommon spectacle to find a man applying himself to work with the utmost assiduity, in order that his wife may in due form render for him that degree of vicarious leisure which the common sense of the time demands. The leisure rendered by the wife in such cases is, of course, not a simple manifestation of idleness or indolence. It almost invariably occurs disguised under some form of work or household duties or social amenities, which prove on analysis to serve little or no ulterior end beyond showing that she does not occupy herself with anything that is gainful or that is of substantial use. As has already been noticed under the head of manners, the greater part of the customary round of domestic cares to which the middle-class housewife gives her time and effort is of this character. Not that the results of her attention to household matters, of a decorative and mundificatory character, are not pleasing to the sense of men trained in middle-class proprieties; but the taste to which these effects of household adornment and tidiness appeal is a taste which has been formed under the selective guidance of a canon of propriety that demands just these evidences of wasted effort. The effects are pleasing to us chiefly because we have been taught to find them pleasing. There goes into these domestic duties much solicitude for a proper combination of form and color, and for other ends that are to be classed as aesthetic in the proper sense of the term; and it is not denied that effects having some substantial aesthetic value are sometimes attained. Pretty much all that is here insisted on is that, as regards these amenities of life, the housewife's efforts are under the guidance of traditions that have been shaped by the law of conspicuously wasteful expenditure of time and substance. If beauty or comfort is achieved—and it is a more or less fortuitous circumstance if they are—they must be achieved by means and methods that commend themselves to the great economic law of wasted effort. The more reputable, "presentable" portion of middle-class household paraphernalia are, on the one hand, items of conspicuous consumption, and on the other hand, apparatus for putting in evidence the vicarious leisure rendered by the housewife. The requirement of vicarious consumption at the hands of the wife continues in force even at a lower point in the pecuniary scale than the requirement of vicarious leisure. At a point below which little if any pretense of wasted effort, in ceremonial cleanness and the like, is observable, and where there is assuredly no conscious attempt at ostensible leisure, decency still requires the wife to consume some goods conspicuously for the reputability of the household and its head. So that, as the latter-day outcome of this evolution of an archaic institution, the wife, who was at the outset the drudge and chattel of the man, both in fact and in theory—the producer of goods for him to consume—has become the ceremonial consumer of goods which he produces. But she still quite unmistakably remains his chattel in theory; for the habitual rendering of vicarious leisure and consumption is the abiding mark of the unfree servant. [How leisure class consumption impacts the lower classes] This vicarious consumption practiced by the household of the middle and lower classes can not be counted as a direct expression of the leisure-class scheme of life, since the household of this pecuniary grade does not belong within the leisure class. It is rather that the leisure- class scheme of life here comes to an expression at the second remove. The leisure class stands at the head of the social structure in point of reputability; and its manner of life

34 and its standards of worth therefore afford the norm of reputability for the community. The observance of these standards, in some degree of approximation, becomes incumbent upon all classes lower in the scale. In modern civilized communities the lines of demarcation between social classes have grown vague and transient, and wherever this happens the norm of reputability imposed by the upper class extends its coercive influence with but slight hindrance down through the social structure to the lowest strata. The result is that the members of each stratum accept as their ideal of decency the scheme of life in vogue in the next higher stratum, and bend their energies to live up to that ideal. On pain of forfeiting their good name and their self-respect in case of failure, they must conform to the accepted code, at least in appearance. The basis on which good repute in any highly organized industrial community ultimately rests is pecuniary strength; and the means of showing pecuniary strength, and so of gaining or retaining a good name, are leisure and a conspicuous consumption of goods. Accordingly, both of these methods are in vogue as far down the scale as it remains possible; and in the lower strata in which the two methods are employed, both offices are in great part delegated to the wife and children of the household. Lower still, where any degree of leisure, even ostensible, has become impracticable for the wife, the conspicuous consumption of goods remains and is carried on by the wife and children. The man of the household also can do something in this direction, and indeed, he commonly does; but with a still lower descent into the levels of indigence-along the margin of the slums-the man, and presently also the children, virtually cease to consume valuable goods for appearances, and the woman remains virtually the sole exponent of the household's pecuniary decency. No class of society, not even the most abjectly poor, forgoes all customary conspicuous consumption. The last items of this category of consumption are not given up except under stress of the direst necessity. Very much of squalor and discomfort will be endured before the last trinket or the last pretense of pecuniary decency is put away. There is no class and no country that has yielded so abjectly before the pressure of physical want as to deny themselves all gratification of this higher or spiritual need. Questions: 1. What is conspicuous consumption? 2. Why does the middle class practice it? 3. What happens when those with less money attempt to practice it?

35

Advertisement: Winton Six Motor Carriage (1909)

36 Text for Advertisement: Winton Six Motor Carriage (1909) Four Times Around the EArth Repair Expense $127.30 Most repair bills are unnecessary. We proved that fact when ten WINTON SIX cars ran 118,503 miles (more than four times around the earth) on repair expenses of $127.30. These figures are sworn to by ten individual owners. One car, with limousine body, ran 17,003 miles. Repair expense -- NOTHING. Another, 11,000 miles. Repair expense -- 30 cents. A Third, 10,595 miles. Repair expense -- NOTHING. Total, three cars, 38,558 miles, on repair expenses of 30 cents. All these cars were Winton Sixes. Pretty sturdy cars, eh? One owner, after running from Cleveland to New England and back (2038 miles) said: "It was like a sealed bonnet run. Never touched the motor. And we didn't find a hill that was hard for us." So it's a hill climber, too. While you are buying a car, why not get the one that tops it over all the rest? The prime secret of motor car supremacy is Continuous Power. No automobile on earth can have Continuous Power unless it has Six Cylinders. The Winton Six has Six Cylinders. Therefore, it's right in principle. And because it's right in practice, too, it's the quietest, pretteist running car of them all. None better on hills. None more flexible. None more reliable. We are using the same, identical motor for 1910 as in 1900--we couldn't improve it. The 1910 buyer gets foru forward speeds, a larger clutch, the best carburetor we have ever seen, dual ignition, a superb, roomy body, suspended low on semi-elliptical springs, 124-inch wheel base (4 inches increase), an an inswept frame, allowing short turning radius. Starts from the seat without cranking--A feature not to be found on any other car of any type. A feature worth the price of one's self-respect. At $3000 the 48 horse-power Winton Six represents the absolute limit of motor car value. Let us send you the details. We want you to know about "Sixes vs. Fours;" you don't have to be a mechanical expert to understand the facts. And by all means get the full details about the ten Winton Sixes that ran more than four times around the earth on $127.30 repair expense. Clip the coupon and send it today.

Question: According to the ad, in what way is this car an improvement from earlier cars?

37

Down by the Old Mill Stream (1910) Words and Music by Tell Taylor My darling I am dreaming of the days gone by, When you and I were sweethearts beneath the summer sky; Your hair has turned to silver the gold has faded too; But still I will remember, where I first met you. The old mill wheel is silent and has fallen down, The old oak tree has withered and lies there on the ground; While you and I are sweethearts the same as days of yore; Although we've been together, forty years and more. Chorus: Down by the old mill stream where I first met you, With your eyes of blue, dressed in gingham too, It was there I knew that you loved me true, You were sixteen, my village queen, by the old mill stream. Question: People used to sing this song around the piano. What would have made it appealing? Emma Lazarus: The New Colossus (1883) This is the poem inscribed on the plaque in the Statue of Liberty. Not like the brazen giant of Greek fame, With conquering limbs astride from land to land; Here at our sea-washed, sunset gates shall stand A mighty woman with a torch, whose flame Is the imprisoned lightning, and her name Mother of Exiles. From her beacon-hand Glows world-wide welcome; her mild eyes command The air-bridged harbor that twin cities frame. "Keep, ancient lands, your storied pomp!" cries she With silent lips. "Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your teeming shore. Send these, the homeless, tempest-tost to me, I lift my lamp beside the golden door!" Question: According to this poem, what is the purpose of the statue?